Advanced Drainage Systems, Inc. Announces Earnings Results for the Fiscal Second Quarter and Six Months Ended September 30, 2016; Provides Free Cash Flow Guidance for the Second Half of Fiscal 2017 and Revises Earnings Guidance for the Fiscal Year 2017
January 12, 2017 at 11:30 am
Share
Advanced Drainage Systems, Inc. announced earnings results for the fiscal second quarter and six months ended September 30, 2016. For the quarter, net sales decreased $22.5 million, or 5.9%, to $360.8 million compared to $383.3 million in the prior fiscal second quarter. The decrease in Net Sales were primarily due to a weaker than anticipated domestic construction market and continued softness in the domestic agriculture market and Mexico. The company reported adjusted EBITDA (Non-GAAP) of $65.6 million compared to Adjusted EBITDA of $63.7 million in the prior fiscal second quarter, an increase of 2.9%. The increase in Adjusted EBITDA was largely attributed to the same factors mentioned above. Adjusted earnings per fully converted share (Non-GAAP) was $0.35 per share based on weighted average fully converted shares of 73.4 million, improved from an adjusted earnings per fully converted share of $0.21 per share for the prior fiscal second quarter.
For the fiscal first half 2017, the company recorded net cash provided by operating activities of $45.6 million compared to $16.9 million for the same period last year. Net debt (total debt and capital lease obligations net of cash) was $420.2 million as of September 30, 2016, a decrease of $75.0 million from September 30, 2015.
The company provided free cash flow guidance for the second half of fiscal 2017 and revised earnings guidance for the fiscal year 2017. The company expects free cash flow generation should remain strong in the second half of fiscal 2017, which will provide additional avenues to create shareholder value including investing in business, making selective acquisitions and returning cash to shareholders.
Based on current visibility, backlog of existing orders and business trends, the company has revised its net sales and adjusted EBITDA targets for fiscal 2017. Net sales are now expected to be in the range of $1.225 billion to $1.250 billion with adjusted EBITDA between $190 and $210 million for fiscal year 2017. The revised guidance is predicated on the belief that end market performance will be slightly lower than previously expected for fiscal year 2017.
Advanced Drainage Systems, Inc. is engaged in manufacturing water management solutions for the stormwater and onsite septic wastewater industries, which provides superior drainage solutions for use in the construction and agriculture marketplaces. The Company's segments include Pipe, International, Infiltrator and Allied Products & Other. Its Pipe segment manufactures and markets performance thermoplastic corrugated pipe throughout the United States. Its Infiltrator is engaged in providing plastic leach field chambers and systems, septic tanks and accessories, primarily for use in residential applications. International segment manufactures and markets products in regions outside of the United States, with owned facilities in Canada and those markets serviced through its joint ventures in Mexico and South America. The Companyâs Allied Products & Other segment offers adjacent technologies to its core Pipe offering, presenting a complete drainage solution for its clients and customers.
Advanced Drainage Systems, Inc. Announces Earnings Results for the Fiscal Second Quarter and Six Months Ended September 30, 2016; Provides Free Cash Flow Guidance for the Second Half of Fiscal 2017 and Revises Earnings Guidance for the Fiscal Year 2017
ADVANCED DRAINAGE SYSTEMS, INC. 
